CESTAT adjudicated an import classification dispute involving ...

Software License Documentation Classified Separately from Hardware, Shifting Customs Duty Treatment Under Specific Tariff Provisions

April 23, 2025

Case Laws     Customs     AT

CESTAT adjudicated an import classification dispute involving software license documentation accompanying distributed control system hardware. The tribunal determined that software license documentation in paper form should not be classified under CTH 8538 9000 as originally assessed. Relying on prior precedent and CBEC circular, the tribunal held that documents conveying software usage rights merit classification under alternative tariff headings, specifically rejecting the original classification. The tribunal's analysis emphasized the distinct nature of software licensing documentation from embedded hardware components. Consequently, the appeal was allowed, effectively overturning the previous classification and potentially modifying the applicable customs duty treatment for similar imported software licensing materials.

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